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Technology Stocks : Dell Technologies Inc.

DELL 133.78

-0.1%

Nov 14 9:30 AM EST

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To: Sr K who wrote (30327)	2/19/1998 10:06:00 PM
From: jbn3	Read Replies (1) of 176387

re stock buybacks: BEKlein, I don't think DELL buys back stock as you are visualizing it. DELL sells puts on their stock and buys long-term calls. They then exercise the calls to buy back their stock. In you go and read the last annual report, they discuss it there. You will note that in FY 1997 they bought back 30M shares at an average cost of under $30 (I believe it was under $28.) Therefore, their announcement that they are going to continue to buy back stock is an extremely bullish sign, as they expect the puts to continue to expire worthless, and the calls to grow in value. DELLish, 3.

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